Dividend investors what's your favorite ETF's?

[Flyfish1]

Quote:

Originally Posted by marko Small stake (<$100K) in a CEF: PDI currently running at 16% dividend. Risky, I know but the payments keep coming in every month.

I don't think the dividend is risky. Probably a great time to buy PDI. I own some as well as PTY and PDO. PIMCO funds have a long history of paying strong dividends. As long as you understand CEF's and their inherent leverage then go for it.

[teej1985]

Quote:

Originally Posted by dobig What are your favorite dividend etf's and what are your goals (retirement income, safety, growth, etc,)? I prefer dividend growth over higher yield so currently in SCHD and VYM but would like to add some diversity for safety. Looking at SPYD and VPU but dividend growth seems lackluster but do like the funds. For myself I'm looking for income and the simplicity of in the future having the dividends deposited directly into our cash accounts for expenses. Please no arguments from total return investors.

If you prefer dividend growth over high yield, why did you choose VYM (a high yield fund) over VIG (a dividend growth fund) ?

[2018]

I'm also on the SCHD bandwagon with ~ 20% of my portfolio, but I also have another 12% in DGRO as it seems to have similar characteristics.


Both are low cost, but DGRO focus is more diverse in holdings (not saying this is good or bad, just different)



There are several articles comparing the two, and a smattering of the usual VIG/VYM compare for the Bogleheads.

[teej1985]

Quote:

Originally Posted by Phroig VIG is an excellent fund (I own the mutual fund version), but it’s not for dividend investors. I’d avoid CEFs unless you’re willing to research them and know exactly what you’re getting.

It's literally a dividend growth fund which is what OP stated is the strategy they want to pursue...

[target2019]

Quote:

Investment approach Seeks to track the performance of the S&P U.S. Dividend Growers Index. Passively managed, full-replication approach. Fund remains fully invested. Large-cap equity, emphasizing stocks with a record of growing their dividends year over year. Low expenses minimize net tracking error. https://advisors.vanguard.com/invest...n-etf#overview

There's differences in all of these dividend funds. One fund selects companies based on consistently growing the dividend. Another may narrow the focus, and exclude companies that are significant Growth companies (like APPL and MS).

[marko]

Quote:

Originally Posted by Flyfish1 I don't think the dividend is risky. Probably a great time to buy PDI. I own some as well as PTY and PDO. PIMCO funds have a long history of paying strong dividends. As long as you understand CEF's and their inherent leverage then go for it.

I understand the leverage aspect but how does that become a problem or risk? These funds have been around for a long time.

[Flyfish1]

Quote:

Originally Posted by marko I understand the leverage aspect but how does that become a problem or risk? These funds have been around for a long time.

I think we are on the same page here. Leverage is only an issue if things go badly. But as you have stated these funds have been around a long time and they provide excellent dividend income. I own quite a few CEF's. Great income and has helped me retire "sort of early".

[buckskinbowman]

For diversity in a dividend ETF, take a look at PFFA.They invest in preferred stocks and pay a 10.25% dividend. Yes, they do use leverage. If that scares you, look at PFF same principle but no leverage.

But why limit yourself to just ETFs? Closed-end Funds (CEFs) offer a huge variety of dividend paying stocks.

[aleabo]

why not Wellesley? You have dividend paying stocks and bonds, less risky then CEF

[teej1985]

Quote:

Originally Posted by buckskinbowman For diversity in a dividend ETF, take a look at PFFA.They invest in preferred stocks and pay a 10.25% dividend. Yes, they do use leverage. If that scares you, look at PFF same principle but no leverage. But why limit yourself to just ETFs? Closed-end Funds (CEFs) offer a huge variety of dividend paying stocks.

Which one would you rather own?

https://www.portfoliovisualizer.com/...vKZpTHkhUzkhVj